# AC transmission and Steel

AC transmission needs steel; their prices have moved together.

Source page: https://www.materialinsights.org/links/ac-transmission-and-steel/

[AC transmission](https://www.materialinsights.org/energy/e_hvac/) (energy) and [Steel](https://www.materialinsights.org/commodities/steel/) (commodity): 2 relationships.

## How they are linked

### 1. Material need

*Physical flow · Direct · Steel → AC transmission*

Building or running AC transmission needs steel.

### 2. Price link: core and towers

*Cost and price · Moderate · Both ways*

Transformer cores use grain-oriented electrical steel and lines hang on steel towers. The transformer index tracks the steel mill index weakly month to month, at 0.34, and moderately year to year, at 0.56, since steel is one cost among copper, labour and factory margins.

- **0.34** monthly change correlation
- **0.56** 12-month change correlation
- **0.88** fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.